OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?

Re:OpenAI and Anthropic cut their LLM prices by up to 80% wi... by _heimdall on Sunday October 25, 2026 @09:27PM (#50237923)

I don't have the numbers in front of me but could have sworn I had seen quarterly revenue growth rates dropping drastically over the last year or so. Still a strong growth rate, but much lower than prior growth rates.

Edit: Data because silent down votes are useless, Anthropic Q2 2026 grew 147% while Q3 grew 45%

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Re:OpenAI and Anthropic cut their LLM prices by up to 80% wi... by eeedda on Sunday October 25, 2026 @11:08PM (#50238598)

Yes but its growth rates with respect to expenditures, and in particular capital expenditures (R&D etc), which we have no idea about.

Gross margins here are irrelevant: if they can't charge a high enough price to cover all expenditures and rely on cash raised via fund-raises, they are not financially healthy.

Could they be one day? Maybe.

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Re:OpenAI and Anthropic cut their LLM prices by up to 80% wi... by _heimdall on Sunday October 25, 2026 @11:37PM (#50238802)

I think we agree in a backwards kind of way.

Yes they do need to grow margins to cover expenses, eventually when Amazon had to turn a profit.

My point was only that the numbers we do know clearly show a drop in growth rate of revenue, I can't judge numbers that aren't publicly known.

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